Harte-Hanks Beats Analyst Estimates on EPS

Seth Jayson, The Motley Fool
Updated

Harte-Hanks (NYS: HHS) reported earnings on Jan. 31. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Harte-Hanks met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped significantly.

Gross margins expanded, operating margins were steady, and net margins were steady.

Revenue details
Harte-Hanks tallied revenue of $224.6 million. The five analysts polled by S&P Capital IQ hoped for sales of $226.6 million. Sales were 4.8% lower than the prior-year quarter's $236.0 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.23. The five earnings estimates compiled by S&P Capital IQ anticipated $0.22 per share on the same basis. GAAP EPS of $0.23 for Q4 were 8.0% lower than the prior-year quarter's $0.25 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 20.5%, 20 basis points better than the prior-year quarter. Operating margin was 10.6%, about the same as the prior-year quarter. Net margin was 6.6%, about the same as the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $201.4 million. On the bottom line, the average EPS estimate is $0.15.

Next year's average estimate for revenue is $858.8 million. The average EPS estimate is $0.78.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 52 members out of 66 rating the stock outperform, and 14 members rating it underperform. Among 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give Harte-Hanks a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Harte-Hanks is hold, with an average price target of $10.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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